Consumer spending in France rose less than expected in April

France's consumer spending grew less than expected in April, as weak household demand weighed on economic expansion earlier this year.

According to data released Wednesday by the statistics agency Insee, spending rose 0.3% from March. This marked the first increase this year. Economists surveyed by Bloomberg had forecast a 0.8% increase.

These dynamics indicate relative stability in the second-largest eurozone economy amid political turmoil and a budget crisis. In recent months, these factors have negatively affected domestic demand and investment. French GDP growth contracted in the fourth quarter of 2024. In the first three months of this year, the rate was below the eurozone average.

Consumer confidence also fell this month as households became less optimistic about their financial outlook, employment, and living standards.

The monthly spending report showed renewed growth in expenditures on food and manufactured goods in April. Meanwhile, energy consumption in France fell sharply due to warm weather.